Strategies Formulation

STRATEGIES FORMULATION Business Strategies As there are rapid maturement assent calling notice business Hong Kong, run Seng confide rent to put more effort to improver their belief flier customer base. They should put more resources in developing assent card products and improve helpers. Functional Strategies Product Strategies The Boston Consulting Groups(BCG) Growth-share matrix is use to assess the sizes and positioning of the Credit wittiness. Hang Seng Bank Credit Card business is positi unrivalledd as ? Star? as it has covered high coitus market share in fast growth reference card business.The Bank? s credit card business is lucrative and result become the Bank? s further cash cow. The aver has to spend substantial fund to keep up with high market growth rate and fight off its competitor? s attacks. Product growing In order to serve in such a competitive environment. Hang Seng? s tar have is to provide premium credit card products supported by premium custo mer Services. Apart from strengthening its exist business, the bank also made progress in diversifying its credit card business and expanding its customer base. MarketingTo improve the credit card business in the industry, the bank has adopted a new trade outline. Traditionally the bank relied solely on the ? word-of-mouth? approach to promote the run. Such strategy was most successful in the old days but would need to be supplemented in today? s world of communications. More marketing promotions need thus been organized to increase customers? awareness about the credit card offered by the Bank. Series of innovative and aggressive marketing private road have been carried out to reposition Hang Seng Retail Banking such as ?The Best Goes On Showcase? which promoted the credit card business. Human Resources thin products without premium work would only lead to product failures. Hence the Bank has invested a lot of resources on cater training and development. To tie in with the changing environment, the Bank? s training focus on the service culture will now be changed to a sales and services culture. The bank should reinforce staff training especially the product cognition and the selling skill which is very important in promoting the increasing enumerate of new products and services in the near future.On the other hand, the development of staff is very important as well since a well educate and highly motivated staff with an all-round personality would definitely plant about improved productivity. Recommendation The credit card business is one of the fast growing financial services industry. Hang Seng Bank credit card has positioned at No. 3 with sixty hundred gravitational constant cardholders and the 2nd Merchant Sales Volume bank in Hong Kong. It have potential for the bank to increase their market share in the business.The pursuance recommendation will improve their performance in the business. 1. Enhancing operational strength Simplify credit card application form and shorten the sequence to issue a credit card to customer, say within 2 weeks time. The improvement can provide customer a convenience centering to get a credit card 2. Airline mileage chopine Most of the credit card issue bank have already launched the airline mileage program in their credit card services like Hong Kong Bank and Standard Chartered Bank. The feedback are welcome to cardholders.In construction of the keen competition, Hang Seng bank credit card should add this harming of program to the credit card service. 3. Target new market segments place marketing strategy should be continually adopted. Consider the lifestyle, income and benefit segmentation. The throng in this segment are high potential group. 4. Promotion outline Hang Seng Bank credit card should put more resources in promotion which can increase their company images. Using gimmick relic and pre-approved to attract customer application intention. 5. Merchant Sales Increase merc handiser sales will also increase the bank revenue.Since every proceeding in a credit card, the issue bank will whit 1% of the obtain and merchandiser sales bank will atom 1% as well. Align with other big and famous department store, supermarket and restaurant to introduce ? Co-brand Card?. The will increase the credit purchase rate. More important it will also carry up the merchant sales. 6. Card Referral Program The Card Referral Program is one of the way to increase the credit card customer base. The program show that the bank only if give out a small amount of money and get a large return of cardholder.